date

22 June 1801 Polit. Economy
22 June 1801

Polit. Economy

Analysis

5

In the case of all articles of intrinsic use, the quantity of use capable of

being made of a given mass of any sort of article, encreases with and in

proportion to the quantity Thrice[?] the quantity of corn administered in the

way of food. twice[?] the quantity, quality being alike will keep alive for a

given time, twice the number of human creatures /people/ or other animals: and

excepting the same may be said even of articles of subservient use.

But of money this can not be said. The only use it is applicable to - the only

it is of is in the way of exchange The value of it does not always encrease in

proportion to its quantity. In a certain sense /certain cer/ it might with more

propriety even be said to be inversely as its quantity: that is /for/ the value

of any part of the mass is inversely as the quantity of the whole. The value of

the quantity of money given in exchange for other things in the compass of a

year is always equal to that of the quantity of those things given in exchange

for money in the compass of the same year. If in each of two years the quantity

of things given in exchange for money has been the same, while in the latter of

the two the quantity of money given in exchange for the things has been twice as

great as in the former, half or any other part of the mass of money has in the

latter been worth but half as much as the same part was worth in the former.
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    By rise of prices is here meant – not a rise in the price of this or that

    particle in the list of things possessing a value in the way of use: but a

    universal rise of all such articles in comparison /as compared/ with those

    articles viz money of both sorts to which no value is given but that which is

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    inflaming circumstances the same the suffering from loss not consented to is

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    Lastly, to do away the seeming inconsistency - to reconcile the paradox with

    truth. - When my individual found his quantity of gold money doubled the value

    of it was not - any part of it lessened - the quantity of non-pecuniary wealth

    which it gave him the command of was not as to any part of this mass of gold

    lessened by the addition so made to the whole: - for though in the coffers of

    the individual there was as much again the second day - in the whole community

    in Great Britain taken together there was any greater quantity on the second day

    than on the first.

    The whole mass of non-pecuniary wealth or vendible commodities sold within the

    year, is worth the whole mass of pecuniary wealth or money that has been given

    or undertaken to be given in exchange for it within the year: the actual

    quantity of money being multiplied by the number of times it has been given in

    exchange: the one mass is worth the other for by the supposition it has been

    given in exchange for it: and this and no other is on this occasion the meaning

    of the word worth. - of such words as worth and value.